Industry Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Industry Segments

Industry Segments

The Company’s reportable segments include the following two business segments, plus a corporate segment:

•Insurance - commercial insurance business, including excess and surplus lines and admitted lines, throughout the United States, as well as insurance business in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia; and

•Reinsurance - reinsurance business on a facultative and treaty basis, primarily in the United States, United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa.

Commencing with the first quarter of 2016, the Company changed the aggregation of its reported segments. Operating units in the Insurance-Domestic segment and Insurance-International segment, previously reported separately, were combined into the Insurance segment. The segment disclosures for prior periods have been revised to be consistent with the new reportable business segment presentation.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company’s overall effective tax rate.

Summary financial information about the Company’s reporting segments is presented in the following table. Income before income taxes by segment includes allocated investment income. Identifiable assets by segment are those assets used in or allocated to the operation of each segment.

	Revenues
(In thousands)	Earned Premiums		Investment Income		Other		Total (1)		Pre-Tax Income (Loss)			Net Income (Loss)
December 31, 2016:
Insurance	$	5,652,903	$	455,139	$	97,879	$	6,205,921	$	822,617		$	551,482
Reinsurance	640,445		78,967		—		719,412		74,799			51,531
Corporate, other and eliminations(2)	—		30,057		431,789		461,846		(267,983		)	(174,650		)
Net investment gains	—		—		267,005		267,005		267,005			173,553
Consolidated	$	6,293,348	$	564,163	$	796,673	$	7,654,184	$	896,438		$	601,916
December 31, 2015:
Insurance	$	5,431,500	$	410,457	$	96,487	$	5,938,444	$	776,593		$	532,286
Reinsurance	609,109		74,226		—		683,335		94,852			66,627
Corporate, other and eliminations(2)	—		27,962		464,392		492,354		(231,739		)	(155,230		)
Net investment gains	—		—		92,324		92,324		92,324			60,011
Consolidated	$	6,040,609	$	512,645	$	653,203	$	7,206,457	$	732,030		$	503,694
December 31, 2014:
Insurance	$	5,074,308	$	484,039	$	106,853	$	5,665,200	$	826,088		$	561,643
Reinsurance	670,110		88,821		—		758,931		115,677			79,720
Corporate, other and eliminations(2)	—		28,025		421,920		449,945		(244,421		)	(158,133		)
Net investment gains	—		—		254,852		254,852		254,852			165,654
Consolidated	$	5,744,418	$	600,885	$	783,625	$	7,128,928	$	952,196		$	648,884

Identifiable Assets
(In thousands)	December 31,
	2016		2015
Insurance	$	19,137,758	$	18,063,730
Reinsurance	2,524,338		2,441,340
Corporate, other and eliminations(2)	1,702,748		1,225,897
Consolidated	$	23,364,844	$	21,730,967

_______________________________________

(1) Revenues for Insurance includes $830.8 million, $828.3 million and $890.1 million in 2016, 2015 and 2014, respectively, from foreign countries. Revenues for Reinsurance includes $166.6 million, $186.6 million and $249.3 million in 2016, 2015 and 2014, respectively, from foreign countries.

(2) Corporate, other and eliminations represent corporate revenues and expenses and other items that are not allocated to business segments

Net premiums earned by major line of business are as follows:

(In thousands)	2016		2015		2014
Insurance
Other liability	$	1,798,771	$	1,650,131	$	1,541,836
Workers' compensation	1,408,911		1,363,513		1,198,701
Short-tail lines	1,299,545		1,298,883		1,291,021
Commercial automobile	642,452		674,078		642,713
Professional liability	503,224		444,895		400,037
Total Insurance	5,652,903		5,431,500		5,074,308
Reinsurance
Casualty	390,863		421,811		487,264
Property	249,582		187,298		182,846
Total Reinsurance	640,445		609,109		670,110
Total	$	6,293,348	$	6,040,609	$	5,744,418